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November 8, 2012
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  Top Stories 
  • CFTC hears foreign criticism on cross-border rules
    Regulators from Europe, Asia and the U.S. met this week to discuss a plan by the Commodity Futures Trading Commission to extend its reach through cross-border rules governing derivatives. Patrick Pearson of the European Commission raised concerns about the CFTC's rules. "The proposed approaches across the globe simply won’t work. They won't mesh. They won't interact. They will cause conflicts," Pearson said. Bloomberg Businessweek (11/7), Financial Times (tiered subscription model) (11/7) LinkedInFacebookTwitterEmail this Story
  • CFTC footnote could have big effect on OTC derivatives market
    The Commodity Futures Trading Commission's seemingly small addition to a rule allowing dealers to bundle execution and clearing businesses could have a significant effect on the competitive landscape of the over-the-counter derivatives market, experts say. The change could give dealers an advantage over smaller rivals that don't offer both execution and clearing. (subscription required) (11/7) LinkedInFacebookTwitterEmail this Story
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  Regulatory Roundup 
  • Major banks push Euribor and Libor alternative with ECB
    A delegation of leading global banks has proposed to the European Central Bank an alternative to the Euro Interbank Offered Rate and the London Interbank Offered Rate, amid a threat of regulation and low interbank lending. The group supports a benchmark that would be based on "secured market" trades. "The unsecured [interbank] market is ... disappearing, so we need an alternative. A secured index makes a lot of sense," said one person involved in the discussions. Reuters (11/7) LinkedInFacebookTwitterEmail this Story
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  Industry Developments 
  • BoE official warns CCPs against risk and margin secrecy
    Central counterparties' refusal to detail risk and margin models on the grounds of proprietary information cannot be justified, Edwin Schooling Latter, head of payments and infrastructure at the Bank of England, said at the OTC Derivatives Clearing Summit Europe. Citing the entry of small derivatives users, Schooling Latter said, "Not every client can be on the risk committee. Not every client can attend board discussions on segregation. So it is very important those that can't are able to benefit from full and appropriate disclosure by the CCP on how it is managing its risks." (subscription required) (11/7) LinkedInFacebookTwitterEmail this Story
  • BoE official questions estimate of needed collateral
    An industry report that estimated that up to $30 trillion will need to be set aside for collateral because of central clearing of over-the-counter derivatives is overblown, says Edwin Schooling Latter of the Bank of England. "It's important to remember that there is a lot of high-quality collateral available and the amount of it is not numerically decreasing, but actually increasing," Schooling Latter said. (subscription required) (11/6) LinkedInFacebookTwitterEmail this Story
  • Move to organized trading facilities raises concerns
    A lack of resources and dealer involvement may inhibit the future required trading of some derivatives in Europe on organized trading facilities, panelists said at the OTC Derivatives Clearing Summit Europe. Of particular concern was the prospect that banks would not have a part in developing the necessary infrastructure. (subscription required) (11/7) LinkedInFacebookTwitterEmail this Story
  • Other News
  Commodities and Managed Futures 
  • Sen. Wyden is expected to chair energy committee
    Sen. Ron Wyden, a vocal critic of speculation in the commodity markets, appears to be in line to lead the Senate Energy and Natural Resources Committee starting in January. Wyden, D-Ore., would replace Sen. Jeff Bingaman, D-N.M., who did not seek re-election. Platts (11/7) LinkedInFacebookTwitterEmail this Story
  • Other News
Leave other people's mistakes where they lie."
--Marcus Aurelius,
Roman emperor

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